Excel Assignment (read carefully)

GB513: Business Analytics

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Unit 4: Assignment In this Assignment, you will be assessed based on the following outcome:

GB513-3: Predict business results by using quantitative methods.

This Assignment requires you to use Excel in all three questions. Make sure you explain your

answers and provide the regression output tables for Questions 1 and 2.

Make sure to use the Unit 4 Assignment template from Course Documents when you turn in your

answers.

Question 1

Shown below are rental and leasing revenue figures for office machinery and equipment in the United

States over a 7-year period according to the U.S. Census Bureau. Use this data and the regression

tool in the data analysis tool pack to run a linear regression.

Based on the formula you get from the regression output, answer the following questions:

a) What is the forecast for the rental and leasing revenue for the year 2011?

b) How confident are you in this forecast? Explain your answer by citing the relevant metrics.

Year Rental and

Leasing ($ millions)

2004 5,860

2005 6,632

2006 6,543

2007 5,952

2008 5,732

2009 5,423

2010 4,589

Question 2

Suppose a researcher gathered survey data from 19 employees and asked the employees to rate

their job satisfaction on a scale from 0 to 100 (with 100 being perfectly satisfied). Suppose the

following data represent the results of this survey. Assume that relationship with their supervisor is

rated on a scale from 0 to 50 (0 represents a poor relationship and 50 represents an excellent

relationship); overall quality of the work environment is rated on a scale from 0 to 100 (0 represents

poor work environment and 100 represents an excellent work environment); and opportunities for

GB513: Business Analytics

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advancement is rated on a scale from 0 to 100 (0 represents no opportunities and 100 represents

excellent opportunities).

Answer the following questions:

a) What is the regression formula based on the results from your regression?

b) How reliable do you think the estimates will be based on this formula? Explain your answer by

citing the relevant metrics.

c) Are there any variables that do not appear to be good predictors of job satisfaction? How can

you tell?

d) If a new employee reports that her relationship with her supervisor is 40, rates her

opportunities for advancement to be at 30, finds the quality of the work environment to be at 75, and works 60 hours per week, what would you expect her job satisfaction score to be?

Job satisfaction

Relationship with

supervisor

Opportunities for

advancement

Overall quality of

work

environment

Total hours

worked

per week

55 27 42 50 52

20 35 28 60 60

85 40 7 45 42

65 35 48 65 53

45 29 32 40 58

70 42 41 50 48

35 22 18 75 55

60 34 32 40 50

95 40 48 45 40

65 33 11 60 38

85 38 33 55 47

10 5 21 50 62

75 37 42 45 43

80 37 46 40 42

50 31 48 60 46

90 42 30 55 38

75 36 39 70 43

45 20 22 40 42

65 32 12 55 53

Question 3

GB513: Business Analytics

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Investment analysts generally believe the interest rate on bonds is related to the prime interest rate

for loans.

a) Use the following data to construct a scatter graph and then fit a regression line to the data.

Report the regression formula and the r-squared values from the chart (right click on the data

points, select Add Trend line, and select options to show these metrics).

b) Do you think the bond rate can be predicted by the prime interest rate? Justify your answer

using the relevant metrics.

Prime interest

rate

Bond

rate

5.0% 28.0%

12.0% 48.0%

9.0% 32.0%

1.5% 4.0%

0.4% 7.0%

11.0% 36.0%

6.0% 28.0%

2.0% 10.5%

Directions for submitting your Assignment

Make sure to use the Unit 4 Assignment template from Course Documents when you turn in your

answers. Submit your Assignment to the Unit 4 Dropbox.

Grading Rubric

Your Assignment will be graded based on the following breakdown.

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Unit 4 Assignment

Criteria

Points

Possible

Points

Earned

Question 1a

2011 forecast for rental and leasing revenue is accurate. 6

Question 1b

Appropriate analysis of the reliability of forecast based on this formula. 6

Question 2a

Correct regression formula. 5

Question 2b

Appropriate analysis of the reliability of estimates based on this formula. 5

Question 2c

Appropriate analysis of whether there are any variables that do not

appear to be good predictors.

5

Question 2d

Correct expected job satisfaction score. 5

Question 3a

Constructed a scatter graph and included a regression line. 6

Question 3b

Appropriate analysis of whether a bond rate could be predicted by the

prime interest rate.

7

Properly completed assignment template. 5

Total 50